In the bustling automotive market of Uganda, the road to owning your dream car has become more accessible and achievable with the option of vehicle financing options by CFAO Motors.
Isaac Tegule, the Marketing Manager of CFAO Motors explores the world of vehicle financing in Uganda, the benefits it offers, and how you can make your dream car a reality through trusted financing partners.
Tegule explains that Vehicle financing is a financial arrangement that empowers individuals to purchase a car without the need for a lump sum payment upfront. In Uganda, various vehicle financing options are available, such as loans, leases, and hire purchase agreements. However, lenders consider several factors when offering vehicle financing, including credit scores, income, down payment, and other financial aspects.
“When you opt for vehicle financing, you have the flexibility to choose the financing option that best suits your needs and budget. Whether it’s a traditional car loan or a lease agreement, you can enjoy the benefits of driving your dream car without the immediate burden of a full cash payment,” he said.
Tegule added that opting for vehicle financing over cash payment unlocks numerous benefits for car buyers. Vehicle Financing allows expensive cars to become more affordable, as the cost is spread over manageable monthly instalments. This makes it easier for individuals and businesses to access a wider range of vehicles.
“Secondly, vehicle financing allows you to preserve your cash flow and capital, providing financial flexibility for other essential expenses. Rather than depleting your savings with an upfront payment, you can make smaller, manageable monthly instalments while retaining your financial stability,” he said.
Tegule also explains that responsible vehicle financing presents an opportunity to build or improve your credit history. Consistent and timely payments towards your loan demonstrate financial reliability, potentially opening doors to better credit opportunities in the future such as obtaining favorable interest rates on other loans.
He adds that vehicle financing allows one to drive his dream car almost immediately, without waiting to accumulate the full purchase amount. Early ownership means you can start enjoying the benefits of your new vehicle right away.
“To access financing through CFAO Motors’ partners, follow these steps: Identify Your Dream Car: Browse through CFAO Motors’ wide range of vehicles and select the one that best fits your preferences and needs. Prequalification: Submit the required documents for prequalification. These may include your identification, proof of income, and any other necessary paperwork as outlined by the financing partner. Financing Offer: Once prequalified, you will receive a financing offer detailing the down payment, monthly instalments, and other relevant terms. Acceptance and Ownership: After accepting the financing offer and making the initial down payment, you can drive away with your dream car and start enjoying your new vehicle,” he said.
How to have a successful Vehicle Financing
According to Mr. Tegule, for one to increase chances of securing favourable financing terms, he/she must first understand his/her financial capacity and budget accordingly. Calculate the monthly instalments that fit comfortably within the income and expenses.
“Nowadays most lending facilities have access to your credit history, which they use as a guide for determining how risky you are as a borrower. From the reports they can tell if you consistently pay your loans on time. Additionally, they can tell if you are a chronic defaulter and have been black-listed by CRB (Credit Reference Bureau). Therefore, always first take a moment to find out how your rating has improved or deteriorated in recent months,” he said.
He added: “You should check your credit reports carefully and make sure there are no errors. Confirm that you have no debts which have been paid off but not updated such errors can cause problems for your credit rating. If necessary, contact a credit agency to correct any mistakes.”
Tegule also noted that in Vehicle Financing one’s credit report is very important, and it’s very advisable to consult with other agencies that offer a credit score to see what it is. Some of the factors that affect one’s credit score include things like how often one makes his/her loan payments on time, how much money one owes to banks, and how many open loans one currently has.
“Making errors on your credit report disappear can have the same effect as paying off your debts. Additionally, a good credit score will help you get the best loan rates. A significant down payment can reduce the overall loan amount, leading to lower monthly instalments and potentially better interest rates,” he said.
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